Whoever buys a house usually needs a loan. How expensive the financing becomes depends on the amount of equity and the fixed interest rate. Financial intermediaries can assess the influence of these and other factors. Expert advice will help you save costs.
Home loan financing needs to be well thought out and prepared. Check your finances before getting comparative offers and getting advice. First, calculate how much equity you already have today. Then check how much cash you can raise until the start of the mortgage lending. The overview of the current account, a call money account and possible savings investments is quickly gained. Note the notice periods, you can not always access your credit immediately.
It becomes even more difficult if you have invested your assets in securities or real estate. The exact amount, because you get through the sale, has not yet been determined. If you are planning long-term and do not want to finance a house purchase in a year or two, you can keep an eye on the market. If the value of your shares rises today, you should sell them and park the proceeds in your call deposit account. You will get less return there, but you will avoid having to sell at worse conditions in the future.
The budget for home loan finance
If you have clarity about your equity, you can use your current income and monthly expenses to determine the maximum loan rate that you can have. Complete your average spending per month by a position “special editions” that rare or improbable costs into account. Use the Willy Loman budget calculator, which is available free of charge on the Internet, to calculate the maximum loan amount you can finance. In addition to the purchase price of the property, the determined amount must also cover the additional costs, i.e. costs for notary, land register and real estate transfer tax. If the purchase is made through a broker, a brokerage commission may apply.
Now it is time to search for objects on the Internet. If you have little technical and manual knowledge, you should take an expert with you to the inspection – at least if the house is an option. If you buy a second-hand house, renovation costs may apply. Your expert can give you advice on what costs you can expect for the repair.
Cheap home loan finance deals
An objective broker like Willy Loman can help you find suitable home loan finance. The specialists propose suitable financing concepts and explain their advantages and disadvantages. If possible, they also take into account low-interest subsidies, such as Fine Bank loans.
In order to sign the purchase contract and finance the house, you need to contact a notary and need the bank’s financing confirmation. Have you signed the purchase agreement, close the loan contract and leave as a security register a mortgage in favor of the financing bank.
The bank then pays the loan. Once it’s fully paid out, start repaying, usually in monthly installments.